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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500188 | NSE: HINDZINC

Hindustan Zinc Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 10:04 pm

Market Cap 2,05,962 Cr.
Current Price 487
High / Low808/285
Stock P/E23.4
Book Value 18.1
Dividend Yield5.95 %
ROCE46.2 %
ROE55.2 %
Face Value 2.00
PEG Ratio49.58

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Hindustan Zinc Ltd

Competitors of Hindustan Zinc Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Hindustan Zinc Ltd 2,05,962 Cr. 487808/28523.4 18.15.95 %46.2 %55.2 % 2.00
Industry Average205,962.00 Cr487.0023.4018.105.95%46.20%55.20%2.00

All Competitor Stocks of Hindustan Zinc Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales6,5316,1227,9908,7979,3878,3367,8668,5097,2826,7927,3107,5508,130
Expenses2,9732,7873,6203,8344,2493,9284,1594,2503,9343,6533,7903,8964,179
Operating Profit3,5583,3354,3704,9635,1384,4083,7074,2593,3483,1393,5203,6543,951
OPM %54%54%55%56%55%53%47%50%46%46%48%48%49%
Other Income215311279277310367349356287231305280277
Interest92825066445162176218232243262256
Depreciation658702741816731798807928801825904936843
Profit before tax3,0232,8623,8584,3584,6733,9263,1873,5112,6162,3132,6782,7363,129
Tax %34%30%30%33%34%32%32%26%25%25%24%25%25%
Net Profit1,9832,0172,7012,9293,0932,6812,1572,5891,9701,7372,0382,0422,358
EPS in Rs4.694.776.396.937.326.355.106.134.664.114.824.835.58

Last Updated: October 9, 2024, 3:14 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 9, 2024, 3:14 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales12,70013,63614,78814,18117,27322,08221,11818,56122,62929,44034,09828,93429,782
Expenses6,1726,7177,3387,9237,5349,81210,4489,69110,95713,21416,57715,25315,518
Operating Profit6,5286,9197,4506,2589,73912,27010,6708,87011,67216,22617,52113,68114,264
OPM %51%51%50%44%56%56%51%48%52%55%51%47%48%
Other Income1,9661,8812,7883,1272,4741,9561,7821,9111,8191,0821,3731,0831,093
Interest27452417202246113112386290333955993
Depreciation6477856447451,8111,4831,8832,2792,5312,9173,2643,4663,508
Profit before tax7,8207,9709,5708,62310,20012,49710,4568,39010,57414,10115,29710,34310,856
Tax %12%13%15%5%18%26%24%19%25%32%31%25%
Net Profit6,8996,9058,1788,1758,3169,2767,9566,8057,9809,63010,5207,7878,175
EPS in Rs16.3316.3419.3519.3519.6821.9518.8316.1118.8922.7924.9018.4319.34
Dividend Payout %19%21%23%144%149%36%106%102%113%79%303%71%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.09%18.44%-0.04%1.72%11.54%-14.23%-14.47%17.27%20.68%9.24%-25.98%
Change in YoY Net Profit Growth (%)0.00%18.35%-18.47%1.76%9.82%-25.77%-0.24%31.73%3.41%-11.43%-35.22%

Hindustan Zinc Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:7%
3 Years:9%
TTM:3%
Compounded Profit Growth
10 Years:3%
5 Years:0%
3 Years:0%
TTM:4%
Stock Price CAGR
10 Years:11%
5 Years:18%
3 Years:15%
1 Year:63%
Return on Equity
10 Years:25%
5 Years:29%
3 Years:39%
Last Year:55%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 11:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital845845845845845845845845845845845845845
Reserves31,43136,57342,50836,54029,96035,08732,76039,46531,46833,43712,09714,3886,797
Borrowings00007,90802,5386117,2012,84411,8818,72214,016
Other Liabilities3,1904,2595,63915,81013,0827,0006,3156,0546,2137,54510,6319,94910,878
Total Liabilities35,46541,67748,99253,19551,79542,93242,45846,97545,72744,67135,45433,90432,536
Fixed Assets8,4849,1479,44610,3859,99311,30214,77816,46916,80817,39617,62018,05517,657
CWIP1,0821,5412,0052,4283,0713,2202,2542,4891,9222,0752,1071,5292,567
Investments14,54022,50627,25435,22123,78320,22219,48820,32912,95715,05210,10710,4528,437
Other Assets11,3608,48210,2885,16114,9488,1885,9387,68814,04010,1485,6203,8683,875
Total Assets35,46541,67748,99253,19551,79542,93242,45846,97545,72744,67135,45433,90432,536

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +4,7855,4715,5316,4517,5889,8008,7816,62110,56712,69115,16613,343
Cash from Investing Activity +-3,269-3,955-3,807-3,23612,0072,396-1,092-2,648-2,4358466,525-3,405
Cash from Financing Activity +-1,255-1,577-1,902-3,214-11,266-18,612-9,630-2,098-9,697-12,258-23,224-9,946
Net Cash Flow261-62-17818,329-6,416-1,9411,875-1,5651,279-1,533-8

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow6.006.007.006.002.0012.008.00-603.004.0014.006.005.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days121116333377942
Inventory Days620
Days Payable225
Cash Conversion Cycle4071116333377942
Working Capital Days11-1-14-347-208-67-54-44-56-27-37-49
ROCE %23%20%25%20%26%33%28%22%26%37%50%46%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters64.92%64.92%64.92%64.92%64.92%64.92%64.92%64.92%64.92%64.92%64.92%63.42%
FIIs0.70%0.79%0.86%0.81%0.87%0.80%0.81%0.75%0.69%0.60%0.74%1.01%
DIIs2.90%2.95%2.95%2.95%3.03%2.94%2.95%2.98%2.97%2.98%3.01%3.12%
Government29.58%29.58%29.58%29.54%29.54%29.54%29.54%29.54%29.54%29.54%29.54%29.54%
Public1.90%1.76%1.69%1.78%1.65%1.79%1.77%1.81%1.88%1.97%1.78%2.92%
No. of Shareholders2,55,9572,65,5782,72,2353,03,3892,86,1583,21,0163,42,5393,75,8334,01,9854,22,0724,45,9296,24,025

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Natural Resources and New Energy Fund548,2912.0827.469,0232024-11-205976.59%
ICICI Prudential Manufacturing Fund206,5550.1510.349,0232024-11-202189.21%
Motilal Oswal Nifty Midcap 150 Index Fund139,1110.376.979,0232024-11-201441.74%
ICICI Prudential MidCap Fund128,3840.16.439,0232024-11-201322.85%
Nippon India ETF Nifty Midcap 150127,0150.376.369,0232024-11-201307.68%
Nippon India Nifty Midcap 150 Index Fund118,2830.375.929,0232024-11-201210.91%
Motilal Oswal Nifty 500 Index Fund26,5790.071.339,0232024-11-20194.57%
Aditya Birla Sun Life Nifty Midcap 150 Index Fund20,3900.371.029,0232024-11-20125.98%
Motilal Oswal BSE Quality Index Fund9,0231.480.459,0232024-11-200%
Motilal Oswal BSE Quality ETF5,6871.50.289,0232024-11-20-36.97%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21
FaceValue2.002.002.002.00
Basic EPS (Rs.)18.3624.8822.7918.89
Diluted EPS (Rs.)18.3624.8822.7918.89
Cash EPS (Rs.)26.5732.6029.6924.88
Book Value[Excl.RevalReserv]/Share (Rs.)35.9630.6181.1476.48
Book Value[Incl.RevalReserv]/Share (Rs.)35.9630.6181.1476.48
Revenue From Operations / Share (Rs.)68.4880.7169.6853.56
PBDIT / Share (Rs.)34.8644.7041.2831.93
PBIT / Share (Rs.)26.6636.9734.3825.94
PBT / Share (Rs.)24.4036.1833.3725.03
Net Profit / Share (Rs.)18.3624.8822.7918.89
NP After MI And SOA / Share (Rs.)18.3624.8822.7918.89
PBDIT Margin (%)50.9155.3859.2459.61
PBIT Margin (%)38.9245.8149.3348.43
PBT Margin (%)35.6244.8347.8946.72
Net Profit Margin (%)26.8130.8232.7035.26
NP After MI And SOA Margin (%)26.8130.8232.7035.26
Return on Networth / Equity (%)51.0681.2728.0824.69
Return on Capital Employeed (%)48.8586.7137.6528.95
Return On Assets (%)22.8929.6321.5517.45
Long Term Debt / Equity (X)0.270.110.060.13
Total Debt / Equity (X)0.550.910.080.22
Asset Turnover Ratio (%)0.830.850.000.00
Current Ratio (X)1.160.843.943.12
Quick Ratio (X)0.980.743.612.94
Dividend Payout Ratio (NP) (%)70.79303.5078.990.00
Dividend Payout Ratio (CP) (%)48.92231.5860.620.00
Earning Retention Ratio (%)29.21-203.5021.010.00
Cash Earning Retention Ratio (%)51.08-131.5839.380.00
Interest Coverage Ratio (X)15.4256.7160.1434.95
Interest Coverage Ratio (Post Tax) (X)9.1232.5634.6721.67
Enterprise Value (Cr.)131756.63134390.50127908.25113083.00
EV / Net Operating Revenue (X)4.553.944.345.00
EV / EBITDA (X)8.947.127.338.38
MarketCap / Net Operating Revenue (X)4.273.644.445.09
Retention Ratios (%)29.20-203.5021.000.00
Price / BV (X)8.139.593.823.57
Price / Net Operating Revenue (X)4.273.644.445.09
EarningsYield0.060.080.070.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Hindustan Zinc Ltd as of November 21, 2024 is: 247.70

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Hindustan Zinc Ltd is Overvalued by 49.14% compared to the current share price 487.00

Intrinsic Value of Hindustan Zinc Ltd as of November 21, 2024 is: 248.87

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Hindustan Zinc Ltd is Overvalued by 48.90% compared to the current share price 487.00

Last 5 Year EPS CAGR: 0.47%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 29.67%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -74.42, which is a positive sign.
  3. The company has higher reserves (29,423.92 cr) compared to borrowings (4,286.23 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (21.00 cr) and profit (10.00 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 39.58, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Hindustan Zinc Ltd:
    1. Net Profit Margin: 26.81%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 48.85% (Industry Average ROCE: 46.2%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 51.06% (Industry Average ROE: 55.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 9.12
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.98
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 23.4 (Industry average Stock P/E: 23.4)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.55
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Hindustan Zinc Ltd. is a Public Limited Listed company incorporated on 10/01/1966 and has its registered office in the State of Rajasthan, India. Company’s Corporate Identification Number(CIN) is L27204RJ1966PLC001208 and registration number is 001208. Currently company belongs to the Industry of Metals - Non Ferrous - Zinc/Zinc Alloys - Products. Company’s Total Operating Revenue is Rs. 29440.00 Cr. and Equity Capital is Rs. 845.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Metals - Non Ferrous - Zinc/Zinc Alloys - ProductsYashad Bhawan, Yashadgarh, Udaipur Rajasthan 313004Hzl.ir@vedanta.co.in
http://www.hzlindia.com
Management
NamePosition Held
Ms. Priya Agarwal HebbarNon Exe. Non Ind Chairperson
Mr. Arun MisraWholeTime Director & CEO
Mr. Navin AgarwalNon Executive Director
Mr. Akhilesh JoshiInd. Non-Executive Director
Mr. Kannan RamamirthamInd. Non-Executive Director
Ms. Pallavi Joshi BakhruInd. Non-Executive Director
Dr. Veena Kumari DermalNon Exe. & Nominee Director
Mrs. Nirupama KotruNon Exe. & Nominee Director
Ms. Farida M NaikNon Exe. & Nominee Director

FAQ

What is the latest intrinsic value of Hindustan Zinc Ltd?

The latest intrinsic value of Hindustan Zinc Ltd as on 21 November 2024 is ₹247.70, which is 49.14% lower than the current market price of ₹487.00.

What is the Market Cap of Hindustan Zinc Ltd?

The Market Cap of Hindustan Zinc Ltd is 2,05,962 Cr..

What is the current Stock Price of Hindustan Zinc Ltd as on 21 November 2024?

The current stock price of Hindustan Zinc Ltd as on 21 November 2024 is ₹487.

What is the High / Low of Hindustan Zinc Ltd stocks in FY 2024?

In FY 2024, the High / Low of Hindustan Zinc Ltd stocks is 808/285.

What is the Stock P/E of Hindustan Zinc Ltd?

The Stock P/E of Hindustan Zinc Ltd is 23.4.

What is the Book Value of Hindustan Zinc Ltd?

The Book Value of Hindustan Zinc Ltd is 18.1.

What is the Dividend Yield of Hindustan Zinc Ltd?

The Dividend Yield of Hindustan Zinc Ltd is 5.95 %.

What is the ROCE of Hindustan Zinc Ltd?

The ROCE of Hindustan Zinc Ltd is 46.2 %.

What is the ROE of Hindustan Zinc Ltd?

The ROE of Hindustan Zinc Ltd is 55.2 %.

What is the Face Value of Hindustan Zinc Ltd?

The Face Value of Hindustan Zinc Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Hindustan Zinc Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE